The supply of apartments on the conventional rental market has soared over the last few weeks, due both to the slump in demand, because of coronavirus-related restrictions, and a number of properties being taken off short-term rental platforms.
According to data from the last 30 days compiled by the Spitogatos online property ads network, the number of properties up for long-term rent has grown by as much as 44.4 percent, depending on the area; that rate was recorded in Petralona, southwest of central Athens, while if one only takes renovated/furnished apartments (which were typically intended for use as short-term rentals) into account, the growth rate jumps to 61.5 percent.
Even the focal point of short-term rentals in Athens – i.e. Koukaki, next to the Acropolis – saw 11.9 percent growth in long-term rental ads for furnished apartments, while the overall increase in rental ads there came to just 4.9 percent. In the capital’s city center, ads for furnished apartments increased 37 percent and the overall number of ads grew 30.8 percent, while nearby Neos Cosmos reported a 29.2 percent expansion in the supply of furnished flats and a 43.6 percent increase in rental ads overall.
In the rest of Greece the biggest advance in the supply of apartments for rent was in Larissa (26.6 percent) and Volos (23.53 percent), followed by Iraklio (20.3 percent) and Thessaloniki (16.1 percent).
Given the steep decline in revenues from short-term rentals, at least for most of this year, it seems obvious that investors in such properties will probably be unable to service their debts unless they replace those lost revenues, and switching to long-term lets appears to be the only way out.
Spitogatos chief executive officer Dimitris Melachroinos said: “The emerging trend, based on our data, is clear. However, we have not yet seen a reduction in asking prices. The combination of older apartments available for letting whose prices were slightly pushed lower, and the inflow of new, more ‘expensive’ flats in the market that forced rates higher, has for the time being maintained the average asking rental prices without any significant changes.”